Fri | Jan 18, 2019

PanJam acquires full control of Oceana

Published:Wednesday | March 14, 2018 | 12:00 AM
Stephen Facey, chairman and CEO of PanJam Investments Limited.

PanJam Investments Limited acquired full control of the Oceana Hotel project having bought out its Canadian joint venture partner for a purchase price of $403 million, according to new disclosures by the company.

PanJam expects the hospitality market in downtown Kingston to open up in periods ahead, and sees the doubling down on Oceana as a worthwhile investment, according to Chairman and CEO Stephen Facey.

The renovation of the hotel and condo complex is ongoing.

"Our now 100 per cent control of Kingchurch represents our continuing commitment to the revitalisation of downtown Kingston, and the development of Oceana is our contribution to that pursuit," Facey said. "This is a good investment. The successful leasing of the commercial component of Oceana, coupled with the significant number of other downtown developments ... support our positive outlook for the Kingston waterfront," he said.

The deal for full control of Oceana occurred in December when PanJam subsidiary Jamaica Property Company acquired Downing Street Caribbean Place Limited. Downing Street Caribbean Place was the joint operator with Jamaica Property in the Kingchurch operation.

The disclosure was made in PanJam's audited financials for year ending December 2017, in which the property conglomerate reported net profit of $4.2 billion or $3.93 per share.

PanJam has completed the first phase of Oceana's development, which includes the parking garage and commercial space on the ground floor.

"We are pursuing the necessary approvals and financing for the second phase the tower," said Facey, but held back on the details, which he said would be disclosed to shareholders at their next annual general meeting.

Oceana was initially acquired by the partners in late 2014 for $385 million. The redevelopment project was expected to cost around $6 billion, based on previous reports.